New research suggests that many young people in Britain are pessimistic about their likelihood of ever Home ownership.
According to a survey from the Building Societies Association (BSA), 70% of us say that the difficulties young people have getting onto the housing ladder is one of the biggest problems we have in Britain today. This is despite 48% of people aged between 25 and 34 claiming they want to own their own home within the next decade.
However, many in this age-group are highly pessimistic about their prospects of home ownership. Even if they wait a decade 41% think that their dream is unlikely.
Raising a deposit was the highest stated hurdle in home ownership, with 76% of those aged between 25 and 34 claiming so.
Here are the obstacles young people face:
- 76% – Raising a deposit
- 46% – Access to a large enough or any mortgage
- 43% – affordability of mortgage payments
- 29% – Job security
- 18% – Concern that property prices may fall in the future
- 15% – Stamp Duty costs
- 12% – Finding the right property
- 11% – the complexity of the home buying process
What the expert says
Commenting, Paul Broadhead, Head of Mortgage & Housing Policy at the BSA said. “It is stark and worrying how gloomy many young people are about their chances of future home ownership. With the average age of a first time buyer standing at 33, this is the very group most likely to be considering buying. If they are right and their chances in 10 years-time are still bad the societal divide and economic impact already being felt can only grow.
“Without a massive push to build more homes to overcome the deficit of decades it is hard to see that things will improve. Mortgage lenders also have a part to play to break down the barriers. As part of this the BSA has just commissioned a project to explore the potential for intergenerational lending -unlocking some of the housing wealth of the baby boomers. We are at the start of the process so cannot pre-judge outcomes but with around 39% of all housing wealth owned by the over 65’s4 already it is a valid part of this, the BSA has just commissioned a project to explore the potential for intergenerational lending, unlocking some of the housing wealth of the baby boomers.’